Patty Helps Client Transfer 401(k) to a Fixed Index Annuity

June is Annuity Awareness Month, and we are continuing our annuity-focused content with a special case study from agent Patty Gogerty.

Patty Gogerty is a licensed agent who has been with Sams/Hockaday & Associates for over 30 years. She is wonderful at helping individuals navigate the Medicare process, and she offers a variety of financial and life insurance products to help you plan your retirement.

Without further ado, we’ll turn it over to Patty!

Medicare Supplement, Part D, and a 401(k)

I had a client that retired from Mueller company. I first got him and his wife situated with their Medicare Supplement and Part D drug plan.

When we got their health coverage squared away, I asked him what he was going to do with his 401(k), which had $201,000 in it. He talked about going to a local bank and talking to someone there.  

I told him we have several things we could offer that would preserve the money he had. However, he didn’t want to make any decisions right away, and I didn’t hear back from him on this for a while.  

401(k) Started Losing Money – What Now?

Just a little over a month ago, the client called me and said he was losing money and wanted to move his 401(k) funds to me.  

After talking through the variety of options best-suited for retirement, we ended up with a 7-year Fixed Index Annuity plan.  

This option has lots of interest earning potential, but “zero is your hero.” If the market tanks, you cannot lose any of your principal. But when the market goes up, you get to participate in a portion of those gains.

Transferring the 401(k) From Fidelity to an Annuity

The 401(k) was with Fidelity, and we made an initial call to see how much would be transferred.  

When we completed the paperwork, we did a follow up with Fidelity, and a check would be sent out, but for about 15,000 less than the original amount.

He is kicking himself for not doing anything sooner, as his hesitations cost him $15,000.  

But he’s happy that from this point forward, he does not have to worry about losing his principal or earned interest.

Conclusion

If you are nearing retirement or are retired with a 401(k), IRA, or other retirement fund, ask Patty Gogerty about your annuity options.

Fixed and fixed index annuities are a safe way to preserve and grow your nest egg without the risk of the stock market but with higher rates than traditional bank CDs or money markets.

Schedule an appointment with Patty today by calling our office at 217-423-8000 or by visiting our online scheduling system.